ICICI Bank issues foreign currentcy securities to raise Tier I capital

ICICI Bank Ltd has announced that on August 17, 2006, the Bank successfully priced the first-ever foreign currency perpetual non-cumulative subordinated debt securities offering qualifying as Tier I capital by an Indian bank. The US$ 340 million offering had a US$ 3.60 billion order-book with strong interest from investors across the globe. 37% of the securities were sold into the US, 30% in Asia and 33% in Europe. The securities were sold under Rule 144A/Reg S format. The offering was lead managed by J. P. Morgan, Merrill Lynch International and Morgan Stanley.

The securities carry a coupon of 7.25% and were priced at a spread of 194 basis points over LIBOR (translating to a spread of 247 basis points over 10-year US Treasuries), which was below the tight-end of the initial price guidance. These perpetual securities are redeemable at the option of the Bank after ten years with prior approval of the Reserve Bank of India.

Source : Equity Bulls

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